Blackstone is believed to have met with New Look management over the past few weeks and is in the process of deciding whether to launch a second-round offer for the group.
Previously, it was thought the only bidders left in the auction were a consortium comprising US buy-out groups TPG and Warburg Pincus, and Dubai-based Landmark Group with BC Partners.
Bids are expected to be in the region of£1.6 billion and£1.8 billion - well short of the original target. There is speculation that New Look's private equity partners, Permira and Apax, are considering a refinancing of the business if they cannot fetch at least£1.8 billion for the high street chain.
Final-round bids for the retailer are due at the end of June.